Summary of the two articles in your own words
Innovation and technological advancement has created market opportunities and various challenges for all firms in various industries across the world. The Heavy Electrical Equipment Plant of Bharat Heavy Electricals Limited (HEEP, BHEL) is one of the world’s leading global electrical companies that manufacture electrical and power equipment. The electrical plant is located in Hardwar India and its partners and collaborates with various global companies in the global market that include the United States and Germany.
Globalization and liberalization of the business market due to technological advancement has led to high competition among businesses in the global market. In this view, several companies have made advanced corporate strategic steps to enhance their competitive advantage and sustain business growth. The best strategic steps adopted by various companies to enhance the competitive advantage involve processes that improve product quality, service delivery, employee performance, and customer satisfaction.
From the case studies, HEEP, BHEL has adopted an excellent program of total quality management after 1993 ISO certification. The excellence program adopted by HEEP, BHEL is in line with the European Foundation for quality management (EFQM).
In the public sector unit study, the case study provides comprehensive strategic business steps and practices adopted by HEEP, BHEL management in realizing the company’s nine-year milestone business excellence. The case study highlights the critical steps undertaken by the company in successfully adopting total quality management program that led to the winning of the business excellence award of the Confederation of Indian Industry in 2006.
The strategic steps highlighted include implementation of the EFQM business model that guides continuous assessment and monitoring of manufacturing processes and analysis of employee and customer satisfaction index. The assessment enhances the understanding of the weaknesses and strengths of the company. In this aspect, the company assessment provides information on the position of the company in attaining its business excellence, the steps required, and the resource input needed to drive the objective.
The study categorizes the steps into dimensions of two measurable elements that include enablers and results. Enablers refer to leadership and mechanism of resource management and creation and implementation of policies while results refer to the organization’s target and actual performance.
In the business excellence and organization culture study, the case study assesses the company to ascertain the strength of building an excellent culture and becoming a world-leading organization. The study reveals that organizations must adopt an excellent culture to enhance their performance. Additionally, the study indicates that successful implementation of total quality management depends on an organization’s orientation to the culture of excellence.
In this view, the case study identifies employees as key drivers for the development of organizational excellence. The significance of the employee provides the link between broad elements of leadership, organization structure, and results. The elements further subdivide to a framework of innovation, commitment, planning, and performance. The findings of the cultural orientation of excellence in HEEP indicated executive staff sub-culture is weak than non-executive sub-culture. Therefore, for HEEP to achieve a high level of excellence, the management staff must design and implement ways that enhance the development of strong organizational culture.
Which business excellence model will you prefer for self-assessment in your organization (where you currently work or have worked earlier) and why?
I will prefer the EFQM model for self-assessment in my organization because the EFQM model provides a robust framework for the designing, development, and assessment of organizations’ quality needs and establishes the culture of excellence. The framework contains simple steps that involve the determination of elements forming enablers and results. The parameters that comprise enablers and results directly measure the organization’s orientation to excellence.
In this view, to enhance organizations’ progress to excellence, enablers provide a framework that guides the establishment of the right practices in leadership by the top management. Therefore, the model guides the establishment and assessment decisions, decision-making process, strategic planning, and implementation processes. The ability of the model to guide the entire leadership process is significant in establishing a strong culture of excellence within the organization.
The platform of people management provides a framework for determining and monitoring the performance of individuals and the assessment of the steps required to achieve full employee potential to enhance business excellence. The element provides for continuous development and review of human resource policies that guide employee satisfaction as well as customer satisfaction significant in enhancing business excellence. The scoring, therefore, provides a benchmark for continuous self-assessment that shows trends for comparison and improvement.
EFQM model is flexible and provides a platform that contains simple measurement elements that cut across all relevant dimensions of organizations’ cultural development. The flexibility allows for easy and quick analysis of organizations’ policies in a short time and provides an easy review of all the activities over a long period. The quick review enhances organizations’ flexibility in adopting new policies and strategies required for improvement.
Moreover, the model allows for the determination of the cultural orientation of the different sections of the organization’s departments, individual employees, and the entire organization’s culture. The determination provides a comparison of the perceptions and establishes the weak sub-culture that needs improvement. Additionally, the development of policies and strategic objectives enhances the assessment and development of organizations activities that guide planning. Planning help facilitates the analysis and guides in determining the process for the improvement of excellence.
EFQM model enhances self-assessment and does not need external validation but allows honest measurement of organizations’ performance. The parameter of result criteria shows the level of organization’s performance in business activities and the position of excellence. The parameter guides in determining the actual performance, competitors’ performance, the performance of the world’s best organizations, and the organization’s target performance.
People and customer satisfaction assessment result guides in the establishment of the strengths and weaknesses of the organization’s policies, structures, and development of a culture of continuous improvement. The established structure of organizational culture of business excellence guides in quality delivery of service and achievement of organizations’ target objectives on performance.
Overall, the dimension of results promotes self-assessment and comparison of the organization’s achievement and the target goals. The comparison helps identify areas of improvement and the required strategic objectives and policies to enhance performance. This approach helps create and inculcate an excellent culture that enhances all employee involvement in driving the company’s short-term and long-term objectives. Thus, the EFQM model provides a framework for system assessment, employee monitoring, and strategic policy formulation essential in improving an organization’s performance.
On which specific criteria your organization would need to improve if it goes for self-assessment through the EFQM model?
The specific criteria that need improvement by the organization are results. The criteria of results are essential in providing a roadmap based on the current performance, the target organization performance, and the performance of the competitors. The approach significantly guides comparison of company performance with competitor firms and benchmarking of achievements. The organization requires an analysis of current achievements in enhancing its business excellence program.
The results criteria provide organizations achievement on people’s satisfaction, organization social impact, customer satisfaction, and the overall business results. These achievements allow for benchmarking and guide organizational policy and strategy formulation significant in inculcating the development of excellence culture.
The element of customer satisfaction entailing organization achievement in satisfying the needs of customers is critical in developing an excellent culture within the organization. The business of the organization is to deliver products and services in line with customer needs and in a customer-friendly way. The criteria of results enhance the organization’s competitive edge through continuous design and development of products in line with customer needs.
Customer feedbacks provide information on new product requirements and competitor developments that guide product research and development. Business excellence requires policy formulation in line with customer needs. In this aspect, assessment of customer needs and satisfaction act as a framework that enhances customer relationship through the formulation of action plans in total quality management model. Additionally, customer survey allows for analysis and improvement of the product delivery process and development of customer-centered organizational culture. Continuous improvement of product delivery process and performance significantly promotes organization reputation and customer loyalty that subsequently result in business excellence.
The result criterion focuses on the measurement of performance in partnership and collaborative relationships. This element of performance measurement is essential in the assessment of organizations’ achievement in building a participative work culture within organizations different departments and suppliers. Collaboration ensures active participation by all staff at different levels within the organization in the formulation of policies and development of strategies to drive the company’s vision, processes, and mission of business excellence.
Moreover, collaboration with customers in enhancing product quality and service delivery through joint forums significantly guide updating, review, and implementation of organizations’ processes and objectives essential in improvement and management of organizational performance. Partnership alliances with vendors allow the exchange of ideas on business excellence through the joint improvement of production processes and requirements. In this view, this element of result criteria ensures the development of elaborate systems of production that inculcate excellence culture within the organization.
The focus on the business process element of result criterion enhances business excellence through joint employee involvement in the improvement of production and business processes. Performance indicators provide a framework significant in achieving improved business processes and customer satisfaction. The element of process focus enables identification and benchmarking of business processes to achieve set quality systems of excellent performance. The process management process promotes efficient production and reduces system errors leading to improved production and process excellence. Audit assessment of the systems, continuous improvement of process standards, and implementation of quality business processes promote a culture of excellence within the organization and improve performance that leads to business excellence.
How do you think the organizational culture in your organization would support/ go against achieving business excellence compared to BHEL in India?
The organization culture inadequately motivates employees and is a critical factor that hinders business excellence compared to BHEL that has developed a high motivation culture for employees. Motivation aims at satisfying employees and all the elements of motivation in the organization rate low compared to BHEL. Continuous monitoring of employee satisfaction emphasizes employee welfare that inculcates values of excellence across all staff within the organization.
Employee motivation requires inclusion in policy formulation and setting of business goals for the organization to enhance transparency. The organization’s efforts of employee involvement in contribution to business processes lack a layout protocol that encourages equal participation as is in the case of BHEL. BHEL has significantly developed milestone steps that include elaborate policies on the health and safety of both employed and retired staff, excel awards for individuals and teams, training and development programs, and loan benefits that cater to employees’ social needs. These motivational factors enhance the reconciliation of employee and organization goals and needs that result in the motivation of employees to work towards the success of the organization.
An interpersonal relationship is a major factor that incorporates work environment, employee teamwork, and commitment. The organization has not realized improved interpersonal relationships, as is the case of BHEL. Improved work environment develops a strong framework of cultural excellence that promotes the gradual development of quality systems and business processes. BHEL has strongly promoted response to technological advancement, good employee welfare orientation, and employee bonding.
The adoption of advanced technology enhances the design and development of quality products and business processes through research and development that significantly influence organizational excellence. The organization has a low employee commitment compared to BHEL. The element of commitment is essential in achieving excellent customer-centric and quality performance organizational culture.
Employee commitment enhances interpersonal bonding and acknowledgment of organization values that build teamwork and desire for excellence in performance. Additionally, improved interpersonal relationship within the organization promotes stimulation of staff to adopt the dynamic culture and improve the perception of change. The ineffective interpersonal relationship in the organization, therefore, hinders change in organizational culture, processes, and achievement of business excellence.
Effective communication within an organization promotes the development of a culture of mutual acknowledgment and cooperation among employees. The organizational processes of communication lack a culture of excellent functioning. An effective channel of communication promotes ease, quick, and understandable delivery of information within the organization. The effective use of processes in leadership communicates organization goals, values, and mission to all employees.
BHEL has a fully developed effective communication that supports the development of the excellent organization culture. Effective communication promotes the exchange of ideas and guides teamwork and decision-making through the sharing of experiences. Organization policy formulation and strategy development depend on the availability of adequate communication channels. This element hinders the development of excellent organizational culture and the attainment of business excellence.
Excellent communication promotes teamwork, guides in problem-solving and conflict resolution, promotes interdepartmental cooperation, and enhances active participation that leads to business excellence. Thus, the lack of a fully developed and excellent communication processes within the organization significantly affect performance and hinders business excellence.
Suggest a holistic excellence strategy through which your organization may improve its performance
The process of achieving quality service in the organization involves an integration of various elements of the total quality management model. The strategy involves the adoption of quality processes of continuous self-assessment and the improvement of processes, systems, people, and environment. Excellence strategy requires the establishment of an excellent culture within the organization. The strategic process, therefore, involves the integration of the elements of the people, systems, environment, and processes to create a culture of excellence within the organization. The excellence of strategic business steps includes people management, process improvement, and system improvement.
People management is an essential element for the establishment of a culture of excellence within the organization. The organization has low scores of commitment, interpersonal relationships, motivation, and effective communication that significantly influence employee performance and business excellence. People management incorporates participative management, formulation of policies, and rewarding of staff. Participative management is essential in developing effective communication within the organization.
Formulation of policies helps create strategies for staff motivation and stimulation through benefits that include loans, healthcare benefits, and excellence awards. Motivation and staff stimulation enhance staff and organization bonding and improve organizational performance leading to excellence.
The process improvement of business activities involves the interlinking of different departments. The contribution of the departments in business excellence depends on interpersonal relations and the creation of an ample working environment. Improvement of business processes involves continuous assessment and benchmarking to achieve quality production and service delivery. New process designs enhance adoption of the dynamic culture and effective communication.
Staff communication helps build strong interpersonal relationships within the organization. Customer feedback is essential in product design and development. Process management enhances collaboration with suppliers, the adoption of advanced technology, and customer-centric culture that promote excellence within the organization. The element of process management significantly enhances the formulation of policies and the development of strategies employed in staff motivation, effective communication, and a friendly working environment, which promotes individual and organizational performance.
System improvement is a form of excellence strategy that promotes innovation, organizational structure development, and improves planning. Innovation enhances organizations’ flexibility that adopts the dynamic culture, embraces the formulation of new policies, and improvement of new production processes. The dynamic culture embraces the implementation of new strategies within the organization for the continued improvement of performance.
Additionally, system improvement is essential in building strong leadership within the organization. The strong leadership spearheads the development of the culture of excellence within the organization and enhances participatory management.
Formulation of policies to reward innovation within the organization promotes staff motivation and enhances performance. Structural development and strategic planning are essential in setting business goals and performance targets that guide the organization’s business activities. These elements of system improvement promote people management, create excellence culture within the organization, and enhance staff stimulation leading to the attainment of organizational excellence.